Section 95: Compensation for obtaining arrest, attachment or injunction on insufficient grounds

Code of Civil Procedure Section 94. Supplemental proceedings.

95. Compensation for obtaining arrest, attachment or injunction on insufficient grounds.—(1) Where, in any suit in which an arrest or attachment has been effected or a temporary injunction granted under the last preceding section,—

(a) it appears to the Court that such arrest, attachment or injunction was applied for on insufficient grounds, or

(b) the suit of the plaintiff fails and it appears to the Court that there was no reasonable or probable grounds for instituting the same, the defendant may apply to the Court, and the Court may, upon such application, award against the plaintiff by its order such amount ¹[not exceeding fifty thousand rupees], as it deems a reasonable compensation to the defendant for the ²[expense or injury (including injury to reputation) caused to him]:

Provided that a Court shall not award, under this section, an amount exceeding the limits of its pecuniar jurisdiction.

(2) An order determining any such application shall bar any suit for compensation in respect of such arrest, attachment or injunction.

Note: 1. Subs. by Act 46 of 1999, s. 8, for certain words (w.e.f. 1-7-2002).

2. Subs. by Act 104 of 1976, s. 32, for “expense or injury caused to him” (w.e.f. 1-7-2002).

Part in Red is original provisions from CPC reproduced here for reference. 

Code of Civil Procedure Section 96. Appeal from original decree.

Simplified Explanation:

Section 95- This provision has been amended for providing the maximum amount of compensation in case of malicious prosecution up to fifty thousand rupees for injury to the reputation to the defendant, but the Court does not have competence to award compensation beyond its pecuniary jurisdiction.

Prior to the amendment, compensation could be awarded up to a sum of one thousand rupees and the defendant was at liberty to file a separate Suit for damages. The purpose of this provision is to award compensation to the defendant for the expenses or injury caused to him as a result of the plaintiff obtaining an order of his (defendant’s) arrest or attachment or obtaining a temporary injunction against him on insufficient grounds. In certain circumstances, injury may include injury to reputation.

However, the remedy under this Section is very special and the compensation should be granted in exceptional circumstances where Court comes to the finding that the plaintiff had abused the process of the Court by malicious prosecution.

Reference: http://www.nja.nic.in/16%20CPC.pdf

Please share and follow this blog for more such law related articles.

===================